Short Sale CASE STUDY: 013

Don’t Forget Jr. Liens!

When I first spoke to the seller he mentioned getting some State assistance to help him make his payments.  At first I just assumed that this was some sort of disability program because of his medical problems.

It turns out he was actually lent $20,000 and they placed a lien against his property to get repaid!  Truthfully this looks like a good program because it was interest free and the balance was reduced over a period of years until it disappeared (to make sure you truly used it to stay in the home). It was through the Oregon Affordable Housing Assistance Corporation.

Never heard of ’em…

FHA won’t allow more than $2500 to go a junior liens so this could be a problem. Will they accept a short sale? [Read more…]